USA – National Beef, the Missouri based beef processor and subsidiary of Marfrig Global Foods has acquired Iowa Premium, a meat packer previously owned by Sysco in a transaction valued at US$150 million.
Iowa Premium, which is headquartered in Tama, Iowa, has daily processing capacity of 1,100 head of cattle.
The company offers meat slaughtering and meat product packing services and operates using only black Angus cattle, with annual sales of approximately US$650 million.
As part of the transaction, shares in Iowa Premium were incorporated into the capital of National Beef, which was acquired by Marfrig for US$969 million in April last year.
Marfrig which owns a 51% stake in National Beef has acquired a 51% interest in the transaction, representing US$76.5 million in interest value.
“This joint transaction with the other shareholders of National Beef demonstrates our commitment to sustainable growth and is an opportunity to increase our interest in the North America operation,” said Eduardo Miron, CEO of Marfrig Global Foods.
National Beef has also signed a long-term supply agreement with Sysco, an American distributor of food products to restaurants, healthcare and educational facilities, as well hospitality businesses.
“I am excited to expand our beef operations with a processing facility in Iowa and we look forward to strengthening the relationships with the family farmers who produce the highest quality Black Angus cattle in the U.S.,” said Tim Klein, CEO of National Beef and of Marfrig’s North America operation.
“Iowa Premium fits perfectly with our value-based marketing strategy as the company continues to provide customers with the very best beef products and programs.”
Headquartered in Kansas City, National Beef has a slaughtering capacity of 12,000 heads of cattle per day, with two slaughterhouses located in Dodge City and Liberal, Kansas.
“The collective investment in Iowa Premium reflects the company’s optimism regarding the U.S. beef market and the long-term focus of our partnership with Marfrig,” said Brian Friedman, president of Jefferies Financial Group, 30% partner in National Beef.
Last year, Marfrig acquired 91.89% stake in Argentinean beef products producer, Quickfood for US$55 million.